A spokesman at the Court, the Union’s financial watchdog, told European Voice last week that charges of nepotism and sexual harassment levelled by one of its own officials had already been investigated and found to be unsubstantiated.

But, in a surprise move, the Court has announced that its secretary-general, Michel Herve, will now conduct a full in-depth probe into the allegations by British ‘whistleblower’ Dougal Watt.

The inquiry, however, was immediately dismissed as a “complete sop” by MEP Nirj Deva, who has read Watt’s dossier.

He said: “An internal inquiry will convince no-one. This looks like a public relations exercise.”

It has also emerged that Watt, a middle-ranking A7-grade accountant, could face disciplinary action when he returns to work from sick leave.

His most grave claims refer to complaints of sexual harassment against a senior official who cannot be named for legal reasons. Watt said two secretaries propositioned by the man were not re-hired when their temporary contracts expired.

This paper has since learned from members of staff at the Court that the two women were, in fact, re-employed after passing one of the institutional competitions.

Other officials, however, insist that the women never left.

Insiders say Watt, who joined the Court in 1995 from Britain’s National Audit Office, has become “introspective” in the past six months.

However, that has not prevented him being elected to the staff committee after he sent a copy of his dossier to all 550 of his colleagues.

He asked them to vote for him if they considered his allegations as “representative and reliable”.

Despite this, Watt’s version of events continues to be strenuously denied by the Court’s board.

A special aide to Court President Juan Manuel Fabra Vallés, said that Watt – who has been off work more than three weeks – would be asked to spell out his allegations at a meeting with Herve.

The aide, who asked not to be named, said: “I must stress that the Court has nothing to hide. There are clear factual mistakes in the letter.”

However, MEPs are concerned that an internal inquiry may not produce a fair outcome.

UK Conservative deputy Deva said: “Originally, we were told the allegations had already been investigated and rejected. We are now told the Court plans to hold another inquiry.

“But how can anyone have any faith in an institution that appears to have made its decision even before the inquiry starts? If the Court wants to be taken seriously, it cannot get away with this. It isn’t good enough. If there is going to be an investigation it should be held in the public arena to stop any accusations of a cover-up.”

He added: “Talk of disciplinary action against Watt is absolutely premature before the results of any inquiry.”